Question 1

What is a stock split? How is a stock split different from a stock dividend?

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Question 2

Explain how each of the following items should be reported by a corporation:
(1)The accounting department discovered that an entry was made last year to Insurance Expense instead of to Prepaid Insurance.The after-tax effect of the charge to Insurance Expense was $5,000.
(2)The accounting department determined the depreciable lives of equipment will be five years instead of the original estimate of seven years.

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Question 3

Gershwin Company reported net income of $428,000 and paid $8,500 in preferred cash dividends during the current year.The company had 110,000 common shares issued,and 10,000 common shares in treasury during the year.The year-end market price per common share was $41.05.Calculate the company's price-earnings ratio.

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Question 4

Shaw Corporation reported stockholders' equity on December 31 of the prior year as follows:
 The following selected transactions occurred during the current year:
  Prepare a statement of retained earnings as of December 31 of the current year.

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Question 5

A company reported $960,000 in net income for the current year.Total weighted-average common shares outstanding are 150,000 shares,and the year-end market price is $67.20 per common share.Calculate the company's price earnings ratio.

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Question 6

A company's stock is selling for $63.20 per share and its earnings per share is $3.60 for the current year.Calculate the price-earnings ratio.

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Question 7

Boron Company is authorized to issue 50,000 shares of $50 par value,8%,cumulative,fully participating preferred stock,and 750,000 shares of $5 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:

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Question 8

A corporation had current year net income of $237,500.It paid preferred dividends of $40,000 cash and had 480,000 weighted-average shares of common stock outstanding.Calculate the corporation's earnings per share.

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Question 9

Beagle Company earned $90,000 in income and paid cash dividends of $7,000 to preferred shareholders during the current year.Beagle had 15,500 weighted-average shares of common stock outstanding for the year.Calculate the company's earnings per share.

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Question 10

Given the following information about a corporation's current year activities,compute the retained earnings for the current year.

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Question 11

A company reported $1,050,000 in net income for the current year.Earnings per common share is $1.75 and the year-end market price of the shares is $31.50.Calculate the company's price earnings ratio.

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Question 12

Explain the difference between a large stock dividend and a small stock dividend.In addition,explain how to record these two types of stock dividends.

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Question 13

A corporation reported net income of $2,730,000 and paid preferred cash dividends of $120,000 during the current year.There were 600,000 weighted-average shares of common stock outstanding and the market price per common share at year-end was $58.30.Calculate the company's price-earnings ratio.

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Question 14

Slate Corporation had the following balances in its stockholders' equity accounts at December 31,2017:

The following transactions occurred during 2018:
  Based on the above information,prepare a statement of stockholders' equity for 2018.Use the form below.

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Question 15

A company reported net income of $836,000 for the current year.The year-end market price per common share was $12 and there were 475,000 weighted-average shares of common stock outstanding.Calculate the company's price-earnings ratio.

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Question 16

Given the following information about a corporation's current year activities,compute the retained earnings for the current year.

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Question 17

A corporation received its charter and began business this year.The company is authorized to issue 500,000 shares of $100 par,6%,noncumulative,nonparticipating preferred stock,and 1,000,000 shares of no-par common stock.The following selected transactions occurred during this year:
  Prepare journal entries to record these transactions.

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Question 18

Rhoads Corporation is authorized to issue 250,000 shares of $50 par,10%,noncumulative,nonparticipating preferred stock and 5,000,000 shares of no-par common stock.Prepare journal entries to record the following selected transactions that occurred during this year:

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Question 19

What is treasury stock? What reasons might a company hold treasury stock?

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Question 20

Explain how to compute book value per common share and discuss how it can be used to analyze the financial condition of a corporation.

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Quiz 11: Corporate Reporting and Analysis

What is a stock split? How is a stock split different from a stock dividend?

Shaw Corporation reported stockholders' equity on December 31 of the prior year as follows: The following selected transactions occurred during the current year: Prepare a statement of retained earnings as of December 31 of the current year.

A company reported $960,000 in net income for the current year.Total weighted-average common shares outstanding are 150,000 shares,and the year-end market price is $67.20 per common share.Calculate the company's price earnings ratio.

A company's stock is selling for $63.20 per share and its earnings per share is $3.60 for the current year.Calculate the price-earnings ratio.

Boron Company is authorized to issue 50,000 shares of $50 par value,8%,cumulative,fully participating preferred stock,and 750,000 shares of $5 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:

A corporation had current year net income of $237,500.It paid preferred dividends of $40,000 cash and had 480,000 weighted-average shares of common stock outstanding.Calculate the corporation's earnings per share.

Beagle Company earned $90,000 in income and paid cash dividends of $7,000 to preferred shareholders during the current year.Beagle had 15,500 weighted-average shares of common stock outstanding for the year.Calculate the company's earnings per share.

Given the following information about a corporation's current year activities,compute the retained earnings for the current year.

A company reported $1,050,000 in net income for the current year.Earnings per common share is $1.75 and the year-end market price of the shares is $31.50.Calculate the company's price earnings ratio.

Explain the difference between a large stock dividend and a small stock dividend.In addition,explain how to record these two types of stock dividends.

A corporation reported net income of $2,730,000 and paid preferred cash dividends of $120,000 during the current year.There were 600,000 weighted-average shares of common stock outstanding and the market price per common share at year-end was $58.30.Calculate the company's price-earnings ratio.

Slate Corporation had the following balances in its stockholders' equity accounts at December 31,2017: The following transactions occurred during 2018: Based on the above information,prepare a statement of stockholders' equity for 2018.Use the form below.

A company reported net income of $836,000 for the current year.The year-end market price per common share was $12 and there were 475,000 weighted-average shares of common stock outstanding.Calculate the company's price-earnings ratio.

Given the following information about a corporation's current year activities,compute the retained earnings for the current year.

Rhoads Corporation is authorized to issue 250,000 shares of $50 par,10%,noncumulative,nonparticipating preferred stock and 5,000,000 shares of no-par common stock.Prepare journal entries to record the following selected transactions that occurred during this year:

What is treasury stock? What reasons might a company hold treasury stock?

Explain how to compute book value per common share and discuss how it can be used to analyze the financial condition of a corporation.